Average total cost is the sum of all the production costs divided by the number of units produced.
substitution cost, the measure of the cost you are giving up in order to achieve something else
It is the cost converting raw material into finished goods. It comprises direct labour and manufacturing overheads.
resarch and development cost are expensed as incurred in the current period and are not capitalized your welcome
It is important to define structures for a project so that it is done in a timely manner and is cost effective and complete. These are all reasons to define parameters.
Functional-based costing considers total expenses incurred at all levels. Functional-based cost budgets for departments, for example, will include costs incurred by every activity performed in that department. In functional-based costing, accountants assign fixed costs such as manufacturing overhead to output on a per-unit basis.
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
Average cost = Total cost / number of units of a good produced. So Total cost = Average cost X No. of units of a good produced
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
When average total cost curve is falling it is necessarily above the marginal cost curve. If the average total cost curve is rising, it is necessarily below the marginal cost curve.
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Average Cost Method: Under this method average cost is calculated by following farmula:Average cost of unit= Total cost of inventory / total number of units
Margianal cost curve crosses the average total cost curve at the lowest point on the average total cost curve to be socially and ecomonical efficient.
as a marginal cost is the cost of the next product produced, if this is less than average cost, when you continue to produce more products the lower marginal cost will have an affect on the average and cause it to fall.
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Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
Total cost would be: (Average cost)*8 +10.
The cost curves best tells us the relationship between the marginal cost and average total cost. The average fixed cost (AFC) curve will decline as additional units are produced, and continue to decline.